I withdrew funds from my 401K and have selected to spread the income over three years. I also had federal tax withheld - can this be spread over three years as well?

[AnnetteB6]

No, the Federal taxes that were withheld will only be taken into account on your 2020 tax return.  

[sherri-cantrell2]

Even though it is related to the CARES Act?  So the next two years will be greatly impacted with no withholding to offset the income?

[SteamTrain]

@sherri-cantrell2 

Correct.  To make up for it, you either increase your withholding for a W-2 job (if you have one) for the next two years.  Doing it that way lets the payments be done in smaller amounts......Or you make one or more Quarterly Estimated tax payments to the IRS  (and state if applicable) to make up for no withholding the next two years.  IF done with estimated tax payments, it's best to make one full payment the first quarter of 2021 (missed already), and 2022 , or 4-equal smaller payments before each quarter's deadline, each year.

For the IRS, This can either be done by mail with the paper forms and a check:

https://www.irs.gov/pub/irs-pdf/f1040es.pdf

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OR by using the IRS Direct Pay website for a Direct Debit from your bank.

https://www.irs.gov/payments/direct-pay

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For states estimated payments, you'd have to check their website to see how they do it.....most have either theri own paper forms, or their own Direct Debit web access.